The Economics Of Groundwater Remediation And Protection

by Hardisty; Paul E.

• ISBN13: 9781566706438
• ISBN10: 1566706432
• Format: Hardcover
• Copyright: 2004-12-20
• Publisher: CRC Press

Summary

Economic literature is often too theoretical for engineers and policymakers to put into practical use, while scientific literature on the remediation of contaminated aquifers rarely considers costs and benefits. Written by a hydrogeologist and an economist, The Economics of Groundwater Remediation and Protection integrates economics and cost-benefit analysis tools with optimal protection and remediation strategies for groundwater resources.The book provides a thorough introduction of the concepts of groundwater flow and contaminant transport, and the basics of economic decision making techniques. It illustrates the types of risks and impacts caused by groundwater contamination, and the economic benefits of its remediation. The volume reviews a wide range of issues such as cost, implementation, and expectations of success for the latest remediation trends and techniques. The book shows how economic analysis can be used to determine how much we should pay for groundwater clean-up, and when spending too much - or too little - actually makes us all worse-off. The authors' step-by-step methodology for decision-making focuses on determining optimal remedial objectives, from containment to extensive cleanup, and the selection of least-cost alternatives. They use examples from their personal experience to illustrate the methodologies in action and put the issues into perspective.Combining the theoretical and practical aspects of science, policy, and economics, this book places the importance of groundwater remediation in the context of environmental economics, protection, and preservation. The Economics of Groundwater Remediation and Protection is also an excellent introduction to innovative solutions for funding remediation projects, education, and incentive programs, such as mitigation banking, land pollution credit schemes, and conservation credit alternatives.

Table of Contents

Series Statement	vii
Series Foreword	ix
Preface	xi
PART I Introduction	1	(88)
Chapter 1 The Case for Rational Environmental Decisions	3	(10)
1.1 The Challenge of Environmental Protection	3	(1)
1.2 Water	3	(4)
1.3 Groundwater in Context	7	(1)
1.4 Sustainability, Optimality, and Intervention	8	(1)
1.5 Organization of the Book	9	(2)
References	11	(2)
Chapter 2 Contaminated Groundwater - A Global Issue	13	(14)
2.1 A Nontechnical Introduction to Groundwater Contamination	13	(5)
2.2 The Regulatory Perspective	18	(7)
2.2.1 U.S. Regulations	19	(3)
2.2.1.1 Superfund	19	(1)
2.2.1.2 The Resource Conservation and Recovery Act (RCRA)	20	(1)
2.2.1.3 Enforcement	20	(1)
2.2.1.4 Groundwater Protection and Remediation	21	(1)
2.2.2 U.K. Regulations and Guidance	22	(5)
2.2.2.1 Groundwater and CBA	22	(1)
2.2.2.2 Brownfield Redevelopment	23	(2)
References	25	(2)
Chapter 3 Groundwater Contamination, Risk, and Remediation	27	(38)
3.1 Introduction	27	(1)
3.2 The Issues	27	(5)
3.2.1 Context	27	(1)
3.2.2 Sources of Contamination	28	(3)
3.2.3 Differing Stakeholder Perspectives: Industry, Government, and Society	31	(1)
3.3 Contamination of the Subsurface Environment - An Overview	32	(17)
3.3.1 Soils, Rock, Geologic Structure	32	(1)
3.3.2 The Hydrologic Cycle	33	(3)
3.3.3 Hydrogeology and Groundwater Contamination	36	(13)
3.3.3.1 Groundwater Hydrology	36	(2)
3.3.3.2 Contaminant Hydrogeology	38	(4)
3.3.3.3 Nonaqueous Phase Liquids (NAPLs) in the Subsurface	42	(7)
3.4 Risk Assessment - Gauging the Impacts of Pollution	49	(5)
3.4.1 Background	49	(1)
3.4.2 Source, Pathway, and Receptor Concept	50	(1)
3.4.3 The Components of a Risk Assessment	51	(3)
3.4.3.1 The Conceptual Model	51	(1)
3.4.3.2 Site Investigation	51	(1)
3.4.3.3 Fate and Transport Modeling	51	(1)
3.4.3.4 Toxicological Assessment	51	(2)
3.4.3.5 Risk Quantification	53	(1)
3.4.3.6 Communication	54	(1)
3.5 Groundwater Remediation and Aquifer Protection	54	(8)
3.5.1 A Rational Approach to Groundwater Contamination	54	(1)
3.5.2 Remediation Technologies	55	(4)
3.5.2.1 History and Trends	55	(1)
3.5.2.2 Regulatory Trends	56	(1)
3.5.2.3 Remedial Technology Selection	56	(1)
3.5.2.4 Advancements in Remedial Technologies	57	(2)
3.5.3 Example - In Situ Remediation of Hydrocarbons Using Soil Vapor Extraction	59	(1)
3.5.4 Example - Horizontal Wells for Groundwater Remediation	60	(2)
References	62	(3)
Chapter 4 Economic Value of Groundwater - An Introduction	65	(24)
4.1 Economic Value of Groundwater - Basic Concepts	65	(15)
4.1.1 Total Economic Value	66	(1)
4.1.2 Measuring Total Economic Value	67	(11)
4.1.2.1 Actual Market Value	69	(1)
4.1.2.2 Market Price Proxies	70	(1)
4.1.2.3 Surrogate Market Techniques	71	(1)
4.1.2.4 Hypothetical Market Techniques	72	(1)
4.1.2.5 Using Economic Value Estimates-Benefits Transfer	73	(5)
4.1.3 Using the Total Economic Value Information in Decision Making	78	(2)
4.1.3.1 Cost-Benefit Analysis	78	(1)
4.1.3.2 Cost-Effectiveness Analysis	78	(1)
4.1.3.3 Multicriteria Analysis	79	(1)
4.2 Economic Value of Groundwater - Review of Literature	80	(7)
4.2.1 Studies Using Actual Market Value Techniques	80	(1)
4.2.2 Studies Using Surrogate Market Value Techniques	81	(1)
4.2.3 Studies Using Hypothetical Market Value Techniques	81	(4)
4.2.4 Summary	85	(2)
References	87	(2)
PART II Applying Economics to Groundwater	89	(76)
Chapter 5 Overview of Economic Analysis	91	(22)
5.1 Project Implementation Framework and Economic Analysis	91	(3)
5.1.1 Stakeholder Participation	94	(1)
5.2 Cost-Benefit Analysis	94	(11)
5.2.1 Definition of Costs and Benefits	96	(1)
5.2.2 Costs and Benefits over Time	97	(2)
5.2.3 Comparing Costs and Benefits	99	(3)
5.2.4 Risk, Uncertainty, and Sensitivity Analysis	102	(3)
5.2.4.1 Risk	102	(1)
5.2.4.2 Uncertainty	103	(2)
5.3 Applying Cost-Benefit Analysis	105	(3)
5.3.1 Financial vs. Economic Analysis	105	(2)
5.3.2 Obstacles to Wider Use of Cost-Benefit Analysis	107	(7)
5.3.2.1 Philosophy and Content	107	(1)
5.3.2.2 Process	108	(1)
5.4 Cost-Effectiveness Analysis	108	(1)
5.5 Other Appraisal Approaches	109	(3)
References	112	(1)
Chapter 6 Groundwater in an Economic Context	113	(12)
6.1 Overview	113	(1)
6.2 Remedial Objectives, Approaches, and Technologies	113	(1)
6.3 Groundwater, Risk, and Uncertainty	114	(3)
6.3.1 Risk	114	(1)
6.3.2 Uncertainty and Multiple Risk Linkages	115	(2)
6.4 Time and Scale	117	(2)
6.4.1 Groundwater Flows	117	(1)
6.4.2 Scale of Groundwater Issues	118	(1)
6.4.3 Cumulative Impacts	119	(1)
6.5 Groundwater Quality and Quantity	119	(1)
6.6 Irreversibility	120	(2)
6.6.1 Irreversible Aquifer Damage	120	(1)
6.6.2 Example: NAPLs in Fractured Aquifers	120	(2)
References	122	(3)
Chapter 7 Economic Theory for Groundwater Remediation	125	(16)
7.1 Conceptual Frameworks for Benefits Assessment	125	(4)
7.2 Benefits and Costs of Groundwater Remediation when Contamination and Damage Are Known	129	(7)
7.2.1 Benefits - Prevention Only	129	(2)
7.2.2 Benefits - Prevention and Remediation	131	(1)
7.2.3 Net Benefits	132	(2)
7.2.4 Discounting	134	(2)
7.3 Benefits and Costs of Groundwater Remediation when Contamination and Damage Are Not Known	136	(3)
7.3.1 Monitoring	136	(1)
7.3.2 Benefits with Uncertainty - Expected Utility	137	(2)
References	139	(2)
Chapter 8 Remedial Costs	141	(16)
8.1 Background: Remedial Technology Costs and Cost Comparisons	141	(4)
8.1.1 Semantics	141	(1)
8.1.2 Communication between Disciplines	142	(1)
8.1.3 Literature Review - Costs of Groundwater Remediation	143	(1)
8.1.4 Private Costs of Remediation	144	(1)
8.2 External Costs of Remediation	145	(11)
8.2.1 Overview	145	(1)
8.2.2 Net Benefits and External Costs	146	(9)
8.2.2.1 Planned External Costs	147	(1)
8.2.2.2 Example: External Costs of Transport to Landfill	148	(4)
8.2.2.3 Unplanned External Costs	152	(1)
8.2.2.4 Example: Accidental Piercing of Basal Containment Layer	153	(2)
8.2.3 Pollution Liability Insurance	155	(1)
References	156	(1)
Chapter 9 Remedial Benefits	157	(8)
9.1 Private (Internal) Benefits	157	(2)
9.2 Public (External) Benefits	159	(2)
9.3 Example - Property Value Increase as a Result of Remediation	161	(1)
9.4 Time	162	(1)
9.5 Education	163	(1)
References	164	(1)
PART III Remedial Decision Making	165	(36)
Chapter 10 Context	167	(8)
10.1 Levels of Decision Making	167	(4)
10.1.1 Policy Objective Level	167	(1)
10.1.2 Remedial Objective Level	168	(2)
10.1.3 Remedial Approach Level	170	(1)
10.1.4 Remedial Technology Selection Level	171	(1)
10.2 Developing an Assessment Framework	171	(4)
10.2.1 Requirements	171	(2)
10.2.2 Framework Overview	173	(2)
Chapter 11 Setting an Optimal Remedial Objective	175	(6)
11.1 Introduction	175	(1)
11.2 Step Al: Screen Objectives - Develop Short-List	175	(5)
11.2.1 Step A1-1: Identification of a Clear Remedial Objective or Objectives	177	(1)
11.2.2 Step A1-2: Identification of a Mandated Remedial Objective	178	(1)
11.2.3 Step A1-3: Identification of Clearly Unacceptable Remedial Objectives	179	(1)
11.2.4 Step A1-4: Preliminary Constraints Analysis	179	(1)
11.2.5 Step A1-5: Objective Short-List Development	180	(1)
Reference	180	(1)
Chapter 12 Reaching the Objective	181	(20)
12.1 Introduction	181	(1)
12.2 Step A2: Determine Approach Short-List for Each Objective	181	(3)
12.2.1 Step A2-1: List Possible Remedial Approaches	181	(1)
12.2.2 Step A2-2: Identify Clear or Mandated Approaches	181	(1)
12.2.3 Step A2-3: Identify Clearly Inappropriate Approaches	182	(1)
12.2.4 Step A2-4: Identify and Apply Constraints	182	(1)
12.2.5 Step A2-5: Develop Approach Short-List	183	(1)
12.2.6 Step A2-6: Determine Relationships between Multiple Objectives	183	(1)
12.3 Step B1: Assess High-Level Benefits Function for Each Objective/Approach	184	(7)
12.3.1 Step B1-1: Link with Risk Assessment	185	(1)
12.3.2 Step B1-2: List Possible Benefits for Each Objective/Approach	185	(2)
12.3.3 Step B1-3: Identify and Value Readily Quantifiable Benefits	187	(1)
12.3.4 Step B1-4: Develop Threshold Benefit-Time Function	188	(2)
12.3.5 Step B1-5: Identify and Assess Nonquantifiable Benefits	190	(1)
12.3.6 Step B1-6: Apply Nonquantified Benefits	190	(1)
12.4 Step B2: Assess High-Level Cost Function for Each Approach	191	(2)
12.4.1 Step B2-1: Select Likely Least-Cost Technology to Achieve Approach	191	(1)
12.4.2 Step B2-2: Determine Broad Cost-Time Function	192	(1)
12.4.3 Step B2-3: Qualify Probability of Success of Each Approach	192	(1)
12.5 Step B3: Determine Economically Optimal Approach for Each Objective	193	(2)
12.6 Step C: Conduct High-Level Partial CBA on Each Objective Option	195	(1)
12.7 Step D: Technology Selection Process	195	(4)
12.7.1 Step D1: Technology Short-List	196	(1)
12.7.2 Step D2: Detailed Constraints Analysis	196	(1)
12.7.3 Step D3: Develop Technology Life-Cycle Cost Curves	196	(1)
12.7.4 Step D4: Evaluation of Alternatives	197	(2)
12.8 Discussion	199	(1)
References	200	(1)
PART IV Case Studies	201	(108)
Chapter 13 Remediation of a Manufactured Gas Plant Site in the United Kingdom	203	(62)
13.1 Overview	203	(4)
13.1.1 Site Description	203	(1)
13.1.2 Geology	204	(1)
13.1.2.1 Made Ground	204	(1)
13.1.2.2 Superficial Deposits	204	(1)
13.1.2.3 Sherwood Sandstone Group	204	(1)
13.1.2.4 Middle Permian Marl	204	(1)
13.1.2.5 Lower Magnesian Limestone	205	(1)
13.1.3 Hydrogeology	205	(2)
13.1.3.1 Made Ground and Superficial Deposits	205	(1)
13.1.3.2 Sherwood Sandstone	205	(1)
13.1.3.3 Lower Magnesian Limestone	206	(1)
13.1.3.4 Hydrology	206	(1)
13.2 Assessment of Contamination	207	(1)
13.2.1 Groundwater	207	(1)
13.2.2 Soil and Vapor	207	(1)
13.3 Hybrid Site Risk Assessment	207	(3)
13.3.1 Preliminary Qualitative Risk Assessment	207	(3)
13.3.1.1 Groundwater Modeling	208	(1)
13.3.1.2 Model Aims	208	(1)
13.3.1.3 Model Results	208	(1)
13.3.1.4 Vapor Modeling-Aqueous Phase Partitioning	209	(1)
13.3.1.5 Vapor Modeling - NAPL Phase Partitioning	210	(1)
13.4 Application of CBA to Example Site	210	(35)
13.4.1 Step A1: Development of Remedial Objective Short-List	210	(4)
13.4.1.1 Clear, Mandated, or Unacceptable Objectives	210	(4)
13.4.1.2 Constraints Analysis	214	(1)
13.4.1.3 Objective Short-List Development	214	(1)
13.4.2 Step A2 Determine Approach Short-List for Each Objective	214	(11)
13.4.2.1 Available Remedial Approaches	215	(1)
13.4.2.2 Develop Short-List of Remedial Approaches	215	(4)
13.4.2.3 Relationships among Multiple Objectives	219	(6)
13.4.3 Step B1 High-Level Benefits of Each Objective/Approach	225	(10)
13.4.3.1 Link with Risk Assessment	225	(1)
13.4.3.2 Possible Benefits of Each Objective/Approach	225	(6)
13.4.3.3 Identify and Assess Quantifiable Benefits	231	(1)
13.4.3.4 Develop Threshold Benefit-Time Function	232	(1)
13.4.3.5 Identify and Assess Nonquantifiable Benefits	233	(1)
13.4.3.6 Apply Nonquantified Benefits	234	(1)
13.4.4 Step B2 Assess High-Level Cost Function for Each Approach	235	(1)
13.4.4.1 Select Likely Least-Cost Technology to Achieve Approach	235	(1)
13.4.4.2 Qualify Probability of Success of Each Approach	235	(1)
13.4.5 Step B3 Determine Economically Optimal Approach for Each Objective	235	(2)
13.4.6 Step C Conduct High-Level CBA	237	(8)
13.5 Sensitivity Analysis	245	(8)
13.5.1 Discount Rate	246	(1)
13.5.2 Timing of Remediation	247	(3)
13.5.3 Value of Groundwater	250	(2)
13.5.4 Mobile Plume Scenario	252	(1)
13.5.5 External Costs of Remediation	253	(1)
13.6 Uncertainty and Limitations	253	(2)
13.7 Appendix - Groundwater Modeling	255	(9)
13.7.1 Background	255	(1)
13.7.2 Objectives	255	(1)
13.7.3 Model Description	255	(1)
13.7.3.1 Model Code	255	(1)
13.7.3.2 Model Parameters	256	(1)
13.7.4 Model Results	257	(1)
13.7.4.1 Model Representation of Hybrid Site	257	(1)
13.7.4.2 Additional Off-Site Source (Run 2)	258	(1)
13.7.4.3 Non--Hard Covered Site (Run 3)	259	(1)
13.7.4.4 Reduced Effective Porosity (Run 4)	259	(1)
13.7.4.5 Reduced Vertical Hydraulic Conductivity of Sandstone (Run 9)	259	(2)
13.7.4.6 PWS Well Close to Site (Run 10)	261	(1)
13.7.4.7 Volume of Aquifer Rendered Unfit for Drinking-Water Abstraction (Runs 11, 16, and 17)	262	(1)
13.7.4.8 Effects of Remediation (Runs 12 to 15)	263	(1)
13.7.4.9 Shallow Source Removal (Run 12)	263	(1)
13.7.4.10 Shallow Source Removal and Source Reduction in Sandstone (Runs 13 and 14)	263	(1)
13.7.4.11 Complete Removal of Source (Run 15)	264	(1)
13.7.5 Discussion	264	(1)
References	264	(1)
Chapter 14 MtBE-Contaminated Aquifer in the United States	265	(4)
14.1 Setting	265	(1)
14.2 Benefits of Remediation - Avoidance of Expected Damages	265	(1)
14.3 Remedial Approach Analysis	266	(1)
14.4 Cost-Benefit Analysis	267	(1)
14.5 Summary - Decision Making	268	(1)
Chapter 15 Tritium-Contaminated Groundwater	269	(28)
15.1 Background	269	(1)
15.1.1 Site Description	269	(1)
15.1.1.1 Geology	269	(1)
15.1.1.2 Hydrogeology	269	(1)
15.1.2 Assessment of Contamination	270	(1)
15.1.2.1 Source of Tritium	270	(1)
15.1.2.2 Groundwater	270	(1)
15.1.2.3 Soils	270	(1)
15.2 Risk Assessment	270	(1)
15.2.1 Health Effects from Tritium Exposure	270	(1)
15.2.2 Source Analysis	271	(1)
15.2.3 Pathways and Receptors	271	(1)
15.3 Remedial Objectives and Approaches	271	(4)
15.3.1 Method	271	(1)
15.3.2 Constraints Analysis	272	(1)
15.3.3 Short-List of Remedial Approaches	272	(3)
15.4 High-Level Benefits Analysis	275	(6)
15.4.1 Context	275	(1)
15.4.2 Link with Risk Assessment	276	(1)
15.4.3 Possible Benefits of Each Approach	276	(2)
15.4.4 Identification and Valuation of Readily Quantifiable Benefits	278	(1)
15.4.5 Identify and Assess Nonquantifiable Benefits	279	(1)
15.4.6 Benefits Summary	280	(1)
15.5 Cost Analysis	281	(4)
15.5.1 Approach Sl - Complete Source Removal (Site Landfill)	282	(1)
15.5.2 Approach SlP - Partial Source Removal (Site Landfill)	282	(1)
15.5.3 Approach Pl - Removal and Treatment of Groundwater	283	(1)
15.5.3.1 Groundwater Modeling	283	(1)
15.5.3.2 Treatment System	283	(1)
15.5.4 Approach MNA - Institutional Management Option	284	(1)
15.5.5 Approach P2PR - Experimental Research Approach	284	(1)
15.5.6 Approach Rl - Collection at the River	285	(1)
15.5.7 Cost Estimate Summary	285	(1)
15.6 Cost-Benefit Analysis	285	(9)
15.6.1 Results	285	(3)
15.6.2 Discussion	288	(2)
15.6.3 Sensitivity Analysis	290	(7)
15.6.3.1 Discount Rate	290	(1)
15.6.3.2 Timing of Remediation	291	(1)
15.6.3.3 High Benefits Valuation Scenario	292	(1)
15.6.3.4 Results	292	(2)
15.7 Uncertainty and Limitations	294	(1)
15.8 Summary	295	(1)
Reference	296	(1)
Chapter 16 Example Problem and Solution	297	(12)
16.1 Introduction	297	(1)
16.2 Site Background	297	(2)
16.2.1 Setting and History	297	(1)
16.2.2 Contamination	298	(1)
16.2.3 Risk Assessment (Base Case)	298	(1)
16.2.4 Stakeholders	299	(1)
16.3 Problem Formulation and Data	299	(3)
16.3.1 The Problem	299	(1)
16.3.2 Indicative Remedial Costs	300	(1)
16.3.3 Indicative Benefit Estimates	301	(1)
16.3.4 Questions	302	(1)
16.4 Solution	302	(7)
PART V Summary and Conclusions	309	(16)
Chapter 17 Summary and Conclusions	311	(14)
17.1 Summary	311	(10)
17.1.1 Groundwater Resources in Context	311	(1)
17.1.2 Legislation	312	(1)
17.1.3 Risks from Groundwater Contamination	312	(1)
17.1.4 Groundwater Remediation	313	(2)
17.1.5 The Economic Value of Groundwater	315	(2)
17.1.6 Economic Analysis of Groundwater Remediation	317	(1)
17.1.7 Remedial Costs	318	(1)
17.1.8 Remedial Benefits	319	(1)
17.1.9 Using Cost-Benefit Analysis for Remedial Decision Making	320	(1)
17.2 Conclusions	321	(4)
17.2.1 Level of Effort	321	(1)
17.2.2 Interdependency of Site Remediation and Groundwater Remediation	321	(1)
17.2.3 Effect of Discount Rate	321	(1)
17.2.4 Effect of Deferral	322	(1)
17.2.5 Further Research on the Economic Value of Aquifers	322	(1)
17.2.6 Use and Limitations	323	(2)
Glossary of Economic Terms	325	(2)
Index	327